The second endorsement of litigation funders – no liability for costsAuthors: Timothy Price
The High Court has delivered its second endorsement of litigation funding (following its 2006 decision in Campbells Cash and Carry v Fostif), holding that a successful defendant could not recover its costs from a non-party who funded the plaintiff without indemnifying it against adverse costs orders. The decision will be welcome news for litigation funders, but has been met with calls for legislative reform to rectify the apparent anomaly in the NSW rules, so that all parties who have a stake in the proceeds of litigation also have a share of the risk.
Significant cases, legislation or articles referred to
- Campbells Cash and Carry Pty Ltd v Fostif Pty Limited  HCA 41; (2006) 229 CLR 386
- Jeffery & Katauskas Pty Limited v SST Consulting Pty Limited; Jeffery & Katauskas Pty Limited v Rickard Constructions Pty Limited  HCA 43
- Uniform Civil Procedure Rules 2005 (NSW)
- Civil Procedure Act 2005 (NSW)